National Insurance
What is National Insurance?
National insurance (NI) is a tax that funds essential state benefits, such as the NHS, state pensions and other social security services.
There are different classes of national insurance, determined by your employment status. If you are employed, NI will be deducted from your salary and your employer will pay this over to HMRC on your behalf. If you are self-employed, your national insurance will be reported and paid to HMRC through your Self Assessment tax return.
What are the National Insurance Rates for Employees?
LEL = Lower Earnings Limit
PT = Primary Threshold
UEL = Upper Earnings Limit
What are the National Insurance Rates for Employers?
LEL = Lower Earnings Limit
ST = Secondary Threshold
UEL = Upper Earnings Limit
In addition to this, employers pay Class 1A National Insurance on taxable Benefits In Kind at 13.8%.
What are the Self-Employed National Insurance Rates?
For the 2025/26 tax year, if your profits are above £6,725, Class 2 contributions are treated as having been paid to protect your National Insurance record. This means you do not have to pay Class 2 contributions.
If your profits are less than £6,725 per year, you do not have to pay Class 2 National Insurance but can choose to do so on a voluntary basis.